Equity Income Funds
  • Equity income mutual funds offer current income as well as capital appreciation
  • Equity income funds can be load funds or no load funds, and can include global equity income
  • The best no load funds will not charge any 12b-1 marketing fees

Equity income mutual funds are mutual funds that have investments and holdings which provide equity income, including global equity income. These funds are ideal for some investors, but are not perfect for all investment needs, so care should be used to determine whether equity income funds fit with the investment strategies, goals, and acceptable levels of risk involved. The goal of these mutual funds is to provide a decent dividend income currently and to allow for maximum capital appreciation at the same time. Equity income mutual funds will have at least two thirds of the net value of the fund assets invested in equity securities which pay moderate dividends. The best no load funds where equity income is concerned are the funds which minimize losses and risks while maximizing the returns seen on the investment. These funds will normally provide some current income from dividends, while allowing for maximum capital appreciation at the same time. Equity income mutual funds offer different risks, returns, and investment strategies, depending on the specific fund chosen, and there are various benefits and disadvantages associated with each one of the equity income mutual funds. Each investor may have a different global equity income fund that is ideal, and finding funds to compare is simple with all of the free online investment tools that can be used.

The best no load funds offer advantages that loaded funds do not have. There are no load fees, and these fees can really add up and detract from the fund value and performance. Load fees are simply sales commissions that are paid to the broker or financial advisor, in exchange for professional investment advice concerning which funds are the best for the specific investor. These fees can be five percent or more, and this percentage can really add up for investments which involve large amounts. Choosing the best no load funds instead will save investment expenses. Looking for equity income funds that have low operating expenses will also lower the costs of investing. No load mutual funds do not offer investment advice, but this is not always a disadvantage. Most investors can find equity income mutual funds online using free investment tools, and then make the needed fund comparisons to find the right funds for their investment needs and goals. Equity income mutual funds can be a great investment for some investors, but not everyone will find these funds ideal.

Some equity income funds may advertise as no load mutual funds when this is actually deceptive. These funds do not charge a front or back end load fee, instead the load charge is hidden in the 12b-1 marketing fee. True no load funds may charge this fee as well, but it will never be more than one fourth of one percent of the value of the net assets for the fund. Many funds do not charge fees for either loads or 12b-1 marketing fees, and these are the best no load funds to choose from. Look for funds that involve low operating expenses, no unnecessary fees or charges, and acceptable risk levels that match with the investment goals. Some equity income funds may involve higher risks, and it is a bad investment move to invest in any mutual fund, or other investment type, without doing thorough research and fund comparisons. The biggest mistake an investor can make is to invest in anything without doing all of the necessary background research and comparisons. This mistake can result in devastating capital losses, and investments that do not perform as well as possible. Each investor will decide whether these funds are right or not.